The general ledger report is showing the total amount of a vendor bill (which has withholding tax calculation) as “Actual total amount – Withholding tax amount”. But the profit and loss report is showing the correct amount without excluding the withholding tax amount. The reason is that the general ledger report will list all the GL accounts and their related transactions and amount. The total debit and credit values need to be the same in the report. So for balancing the debit and credit balances in the report, NetSuite is reducing the Withholding tax amount from the last item line of the bill and is showing the reduced amount in the General Ledger report.
As profit and loss and the balance sheet are showing specified accounts, they are showing the correct amount directly from the bill item lines.
Also, we have to exclude the withholding tax code from the VAT reports as it is the standard method to calculate WH tax in Netsuite. Without excluding withholding tax codes from the reports, we cannot create withholding tax calculations in transactions. To exclude the withholding tax code from the VAT reports, we can check the check box “Exclude From VAT Reports” in the tax code record.